Insurance - Study Mode

[#676] When was the Insurance Regulatory and Development Authority constituted?
Correct Answer

(B) 1999

Explanation

Solution: In 1999 the Insurance Regulatory and Development Authority (IRDA) was constituted to regulate and develop the insurance industry and was incorporated in April 2000. The IRDAI's headquartered in Hyderabad, Telangana, where it moved from Delhi in 2001.

[#677] In which year New India Assurance Co Ltd nationalized?
Correct Answer

(C) 1973

Explanation

Solution: In year 1973 New India Assurance Co Ltd was nationalized. New India Assurance was nationalised in 1973, with the merger of Indian companies.

[#678] What is a policy withdrawal?
Correct Answer

(B) Surrender of policy in return for acquired surrender value

Explanation

Solution: Policy withdrawal is Surrender of policy in return for acquired surrender value. In case of life insurance, if you surrender a policy before the completion of its full term, you could get back a portion of the money you paid as premium, after deducting charges. This money is surrender value.

[#679] Which of the below is one of the ways of defining surplus?
Correct Answer

(D) Excess value of assets over liabilities

Explanation

Solution: Excess value of assets over liabilities is one of the ways of defining surplus. A surplus is an excess of total assets over total liabilities. The trade surplus is likely to persist, and reserve assets, after all, are generating interest incomes. A pension fund has a surplus when its assets exceed its obligations to current and future pensioners.

[#680] Which of the below is not a component of ULIP premiums?
Correct Answer

(D) Social security charge

Explanation

Solution: Social security charge is not a component of ULIP premiums. Social security contributions are compulsory payments paid to general government that confer entitlement to receive a (contingent) future social benefit.